Revenue model

True Gain

Fee Schedule for UrDEX Platform:

  • Position fee for perpetual trading: 0.1% of position size (open/close)

  • Liquidation fee: $5

  • Dynamic borrowing fee (interest rate for leveraged/perpetual trading)

    • Traders pay a borrowing fee every hour. The fee is calculated dynamically based on the asset utilization rate: Borrowing fee (per hour) = (assets borrowed) / (total assets in pool) * 0.01%

    • Maximum borrowing fee: 0.01% per hour (at 100% utilization)

  • Maintenance margin: 1%

    • Liquidation occurs when the debt of an open position reaches 99% of the user's collateral. Any leftover funds after liquidation will be sent back to the user's wallet.

  • Swap fee: ranging from 0% to 0.6%

    • The base swap fee equals 0.2% for non-stablecoin swaps (i.e. USDT>ETH, or BTC>USDT) and 0.01% for stablecoin swaps (i.e. USDC<>USDT). Note that the protocol incentivizes the swapping of assets that are underrepresented (in terms of pool weight) by dynamically reducing the swap fee and vice versa.

Note that the UrDEX DAO will determine the fee structure of the platform once established. The current fee schedule is subject to change.

Contribution sharing

After the initial period, the fees and all other parameters can be changed according to proposals passed by the DAO.

This visual illustrates the fee structure and flow within the UrDEX real yield ecosystem. All fees generated from trading, borrowing, and swapping across various assets (such as BTC, ETH, USDT, etc.) are collected and deposited into a centralized Fee Distributor contract. These assets are then owned by the DAO, with their use and distribution determined through community governance voting.

This fee structure applies only to the regular Liquidity Pool. Strategic partners that provide liquidity enjoy a more favorable fee structure, as they receive a higher percentage of trading fees based on their trading volume.

Last updated